OneConstruction Group Ltd (NASDAQ: ONEG)

OneConstruction Group Ltd is a structural steelwork contractor operating in Hong Kong through its operating subsidiary, which specializes in the procurement, cutting, bending, welding and assembly of structural steel for construction projects. The subsidiary works on columns, beams, frames, trusses and other components that form the backbone of buildings and infrastructure during the initial construction stage. Its typical responsibilities in a project include performing site preparatory and preliminary works, developing detailed work schedules and work allocation plans, implementing construction site works, and conducting site safety supervision and quality control. Since its establishment, the subsidiary has operated exclusively in Hong Kong, serving as a subcontractor for both public and private sector developments. The firm holds registration as a Registered Specialist Trade Contractor for Reinforcement Bar Fixing under the Construction Industry Council of Hong Kong.

The company generates revenue by providing structural steelwork services under contracts with general contractors who engage it as a subcontractor. Revenue comes from the supply and installation of steel components, as well as from related activities such as site preparation, scheduling, execution and quality control. In the fiscal year ended March 31, 2025, total revenue was $53.2 million, of which 86.2 percent was derived from public sector projects and the remainder from private sector projects. In the fiscal year ended March 31, 2024, revenue amounted to $63.5 million, with 84.1 percent coming from public sector works and the balance from private sector works. During those years, the subsidiary completed nine projects in 2025 and eight projects in 2024, reflecting a steady flow of contracts across sectors. Public sector work has included residential developments for the Hong Kong Housing Authority and the Hong Kong Housing Society, as well as infrastructure such as airport third runway, district cooling system, bypass works and hospital projects.

OneConstruction Group Ltd holds a strong position in Hong Kong's fragmented structural steelwork market, being recognized as one of the top service providers and an award winning outstanding contractor by the Hong Kong Housing Authority. The company’s competitive advantages stem from its registration as a Registered Specialist Trade Contractor, a proven track record of completed projects, an experienced management team and stringent quality control systems. The management team includes an executive director with over twenty five years of experience in real estate development, a general manager with ten years of industry experience and a sales and marketing lead with twenty five years in the sector. These strengths enable the firm to win repeat business, respond to tight project timelines and maintain reliable relationships with suppliers and subcontractors. Its main competitors are Chiu Kee Steel Work Limited and Chun Sum Kee Construction Limited, which offer comparable scale but the company differentiates itself through consistent service quality, client satisfaction and a strong safety record.

The company’s customers are primarily general contractors engaged by Hong Kong government departments, authorities and statutory bodies for public sector projects. For private sector work, the customers are general contractors hired by property developers to undertake commercial, residential and industrial developments. While specific client names are not disclosed in the filing, the firm has performed work for projects linked to the Hong Kong Housing Authority and the Hong Kong Housing Society, contributing to a notable share of public residential units under development. It has also supplied structural steel for initiatives such as the airport third runway project, district cooling system, bypass works and hospital redevelopments. The concentration of revenue among a few large clients is evident, with the five largest customers accounting for roughly 85.5% of revenue in 2025 and 83.7% in 2024.